An investigative arm of Congress is taking a look at how charities raise and use money and how the Internal Revenue Service enforces its rules, The Wall Street Journal reported July 11.
Charging that some charities raise millions of donated dollars through “misleading and otherwise questionable fundraising tactics” and then spend only a little, if anything, on legitimate charitable activities, Iowa Republican Sen. Charles Grassley asked the General Accounting Office to conduct the investigation.
Grassley, ranking GOP member of the Finance Committee, told the Journal the probably “appears to be particularly prevalent in the field of charitable wish-granting organizations.”
Many groups don’t comply with IRS rules and are “misleading the public about how charitable donations are being used,” he told the Journal.
A GAO spokesman confirmed the agency has launched the investigation.